Azerbaijan plans to raise excise taxes on imported passenger cars older than seven years starting next year, according to proposed amendments to the Tax Code, APA reported.
Under the new regulation, effective January 1, 2026, imported cars with a production date exceeding seven years will face higher multipliers in excise calculations. The coefficient for gasoline-powered vehicles will rise from 1.2 to 1.5, while for diesel-powered vehicles it will increase from 1.5 to 2.0.
The Tax Code currently applies excise rates based on engine capacity. For example:
Cars with engines up to 2,000 cubic centimeters (cc) are taxed at 0.30 manats per cc.
Between 2,001–3,000 cc, the rate is 600 manats plus 5 manats per cc for that range.
For engines 4,001–5,000 cc, the rate is 18,600 manats plus 35 manats per cc for that segment.
Engines over 5,000 cc are taxed 53,600 manats plus 70 manats per cc for the excess capacity.
Currently, vehicles older than seven years already incur a higher excise rate – with multipliers of 1.2 for gasoline and 1.5 for diesel engines. The proposed amendment would further raise these rates to 1.5 and 2.0, respectively.
Officials say the measure aims to discourage the import of older, more polluting cars and promote the use of newer, environmentally friendly vehicles, though it may also increase import costs for used-car buyers.
